American Reliable Insurance Company
Voyager Indemnity Insurance Company
Standard Guaranty Insurance Company
American Bankers Insurance Company of Florida
Roof Surface Endorsement
Wind or Hail
Agency Bill – Agent/Broker Version
February 2013
Roof Surface Endorsement
Wind or Hail Background
It is our goal to provide the best possible coverage for our customers.
However, it can be difficult to make certain options affordable. Sometimes
we must make changes to our programs that balance the needs of our
customers while allowing us to remain competitive and financially sound. To
facilitate with this balance, the Roof Surface Endorsement will be added to
new and renewal business in applicable states.
What is Changing
When the Roof Surface Endorsement is added to a policy, damage caused by
wind or hail will be settled based on two key factors: (1) The age of the roof
and (2) the type of material used to cover the roof surface. The percentage
of payment made is determined by the Roof Surface Payment Schedule (the
chart is provided in this document for reference). All other provisions will
apply.
Because this is an important change to the policy, it extremely critical for
you to communicate to your clients how roof losses caused by wind or hail
will be settled when this endorsement is added to their policy. Please
explain to your clients that when their roof has been replaced, they should
contact you as soon as possible so their policy records can be updated.
Topics in this User Guide
The Roof Surface Endorsement User Guide will provide information on the
following areas:
•New Business Process
•Renewal Process
•Renewal Process with a Roof Claim on File
•NTP Prior to Renewal Letter Example
•Renewal Letter Example
•Claim Process
•Claim Letter Example
•Roof Exclusion Letter Example
•Roof Surface Endorsement
•Frequently Asked Questions
New Business Process
In order to implement the Roof Surface Endorsement, the following
changes have been made:
•Your General Agent will now be collecting the Year of the Last
Complete Replacement of Roof & Type of Roofing on all structures
•The following disclaimer requires acknowledgement, “I acknowledge
that the Roof Surface Endorsement has been explained to the applicant
and that all questions have been answered.”
•Inspection fees will be added and inspections are required on homes
over 20 years old. Your General Agent will order the inspections using
their current business procedure.
•Coverage A Roof Year was added to the Declaration Page
1 Agent/Broker Version
Renewal Process
•Ten days prior to renewal package generating, a Notice to
Policyholder will be sent to you and to your insured, via Certificate of
Mailing. It will note the roof characteristics (age and material used)
that are in the underwriting file along with a copy of the Roof Surface
Endorsement. The intent of this notice is to solicit information and/or
confirm the accuracy of the roof characteristics on file. Your insured is
not required to return any documentation.
•The General Agent can be contacted to correct the roof information
•The Renewal package will be sent to your insured with a Notice to
Policyholder advising of the roof characteristics on file and a copy of
the Roof Surface Endorsement
•Coverage A Roof Year was added to the Declaration Page
•If your General Agent decides to continue on a risk but exclude the
roof from the policy, you are to collect the insured’s signature on the
Roof Surface Exclusion and submit it to the General Agent, when the
Roof Exclusion is a signature form. (See state specific form for details)
2 Agent/Broker Version
Renewal Process with a Roof
Claim on File
•When a roof claim has been closed, a Roof Claim Letter will be sent
by our home office in Scottsdale, AZ to your insured requesting proof
of roof repair or replacement.
•Should your General Agent receive acceptable roof
repair/replacement information, the policy will renew with the same
coverage as the previous term.
•Should the General Agent receive unacceptable roof
repair/replacement information or no roof repair/replacement
information, the following action will be taken by the General Agent:
•If the policy has Replacement Cost Loss Settlement the policy
will be set for non-renewal
•If the policy has Actual Cash Value Loss Settlement the policy
will be set for non-renewal or renew with Roof &/or Other
Structure Exclusions
3 Agent/Broker Version
Notice to Policyholder Prior to
Renewal Letter Example Below is an example of one of the letters that will be mailed to you and
your insured, Certificate of Mailing, 10 days prior to the day the
renewal package generates.
Letters may vary by state and Line of Business 4
Renewal Letter Example
Below is an example of one of the letters that will be mailed to your
insured with the Renewal package and Roof Surface Endorsement.
Letters may vary by state and Line of Business 5
Roof Claim Closed
Roof Claim Letter
Mailed
Proof of complete roof
REPLACEMENT received
Proof of PARTIAL
REPAIR received
No Proof Received
Year of roof will be reset to year of
replacement; policy will be
renewed with the same coverage as
the last term
Policy will be
renewed with the
same coverage as the
previous term
If home has
replacement
cost loss
settlement,
policy will be
non renewed
If ACV, roof
exclusion
endorsement
added or non
renewed
Claim Process
If the roof was partially repaired using two different materials, the predominant
Roof Type will be selected & the year of roof will not be updated as it was
NOT a COMPLETE replacement.
If a loss to a Coverage A roof is not repaired, the policy will either be non-
renewed or the applicable Roof Exclusion will be added to the policy upon
renewal. You are to collect the insured’s signature on the Roof Exclusion and
submit it to your General Agent, when the Roof Exclusion is a signature form.
If a loss to the Other Structure roof is not repaired, the applicable Other
Structure exclusion will be added to the policy upon renewal.
If your insured provides the roof information after the Roof Exclusion/Other
Structures Exclusion has been added, the Roof Exclusion/Other Structure
Exclusion can be removed from the policy.
Acceptable proof of repairs include receipts and invoices or proof of scheduled
repair (including estimates and a handwritten note advising of the scheduled
repair date).
6
Claim Letter Example
Below is an example of the letter that will be mailed to your insured
after a roof claim is closed.
Letters may vary by state and Line of Business 7
Roof Exclusion Letter Example
Below is an example of one letter that will be mailed to your insured
when the Roof Exclusion Endorsement is added to their policy.
Letters may vary by state and Line of Business 8
Roof Surface Endorsement Example
This is an excerpt from the
Roof Surface Endorsement.
This endorsement may vary
by state and Line of
Business. Please see official
endorsement.
How the Endorsement Reads
Types of Losses:
Applicable Definitions:
How Losses are Settled:
9
This is an excerpt from the
Roof Surface Endorsement.
This endorsement may vary
by state and Line of
Business. Please see official
endorsement.
Roof Surface Endorsement Example How the Endorsement Reads
Payment Schedule
Based on Age and
Type of Roof:
10
Q. What if the agent/broker refuse to “acknowledge” the Roof Surface Endorsement disclaimer?
A. The application will not be issued without accepting this disclaimer.
Q. What is considered acceptable proof of repair?
A. Copy of any completed contract, work agreement, receipt describing the extent of the repair and indication that the
work has been completed is acceptable. If roof was replaced, there must be clear indication that a complete
resurfacing was done and the type of material used.
Q. What if more than half of a roof is replaced, can the year of roof be reset to current year?
A. No, only a complete roof replacement will allow the year of the roof to be reset.
Q. What if more than one type of roofing material was used on a home and installed at different times?
A. The predominant Roof Type should be selected and the year of the roof should not be updated as it was not a complete
replacement.
Q. What if the roof is completely replaced in December, will it be considered a year old in January?
A. It is possible, dependent upon policy term effective date.
Q. What if the insured (or other party) replaced the roof and is not a licensed contractor?
A. The insured will need to provide copies of the receipts and permit application.
Q. Why can’t the roof exclusion be used on a policy with replacement cost?
A. A replacement cost policy is the type of policy a property owner selects (if home is eligible) that provides the best
possible protection for their assets. As such, the insurer expects a higher standard of maintenance and upkeep of the
premises to minimize the overall potential for future loss. Unrepaired roof surface materials may allow rain or
moisture to damage the interior of the home resulting in ongoing losses. If the insured is not willing or able to
replace or repair the roof, we cannot put the company at risk for future repeated claims.
Q. What if the insured says they did not get a copy of the endorsement, when it is added to an existing renewal policy?
A. The initial notification and the endorsement are being sent certificate of mailing. We will be able to confirm that this
was mailed to the insured. In addition, a second notice and the endorsement are sent in the renewal package.
Q. What if the insured never provides the year the roof was replaced but when they have a loss, they advise the
independent adjuster that the roof was replaced 2 years ago?
A. If the insured has acceptable documentation indicating a complete replacement, we will work with you, as the
insured’s agent/broker, to correct the year of the roof and update the policy. We will adjust the loss according to the
year the roof was last replaced.
Q. What if the insured provides proof of roof repair or replacement after the exclusion has been added?
A. If the proof is acceptable, coverage will be restored.
Q. What if the insured suffers from a total loss?
A. The Roof Surface provision does not apply if the dwelling at the residence premises is a total loss.
Q. Will the insured still be responsible for their deductible?
A. Yes, the Roof Surface provision applies in addition to the applicable policy or peril deductible.
Q. What if the roof is damaged or destroyed by a peril other than windstorm or hail?
A. The Roof Surface provision only applies when a loss occurs due to windstorm or hail.
Frequently Asked Questions
11 Agent/Broker Version
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